Welcome to Channellines!

Channel lines started as a pure technical analysis site based off traditional technical analysis of trendlines and their paired parallels. All technical analysis patterns and principals are based off channels (inclining and declining trading ranges) and their interaction with other channels of different slope or time frame.

I took it one step further. The "why" behind technical analysis! Why does it work, why does it not work? Is there a better way to play the markets and be more consistantly correct and profitable? There sure is. All based off the principal of providing liquidity, or taking the "other" side of the trade.

This site is now taking a different direction, we (my trading partner(s)) and I, are using this site more as a trading journal. We will list our positions, in part, and discuss various topics and thoughts throughout the trading day. I encourage the learning process, not relying on a crutch to help you with your trading. The primary purpose of the blog will be just a place for us to write down ideas and thoughts, not to educate (although we will, some), not to assist in your acquirment of monetary gain, but a place to interact with other market participants. My name is George Swanson, also know as Winace. My trading partners/account owners are present, I will allow them to present themselves and reveal whatever of their identity they are comfortable with. Enjoy the trading day, I wish you the best in your market journey.


Monday, December 8, 2008

Break and bounce call.

Below are 60 day charts of the DIA and SPY. The descending wedges appear broken. Before the final target is hit in area 3, I would expect an intermediary resistance level (area 1) to bounce us back to a retrace of support at area 2. There are two alternatives for area 2 on the SPY.

This scenario would do the most damage to the average trader. The breakout of the wedge and go long play would be shaken out by the retrace. Those currently short and holding will have reinforcement of their play until area two sharply bounces prices to area 3.

A bull trap that eventually turns bullish, what a sham....

Note these are purely speculative TA calls, they will not effect my trade technique in the slightest. This is just an opinion based on TA perception. I am currently 100% in cash, and will remain that way until the market directs me otherwise. See you at the bell.


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